Industrial Credit Company v. Cushing
Supreme Judicial Court of Maine · 1966-08-03 · cited 1×
In this case, a finance company (plaintiff) provided funds for a conditional sale of personal property and received an assignment of the unrecorded contract from the vendor; later, the vendor attached the same property to collect an unrelated debt from the buyer, prompting the finance company to seek replevin from the attaching officer. The trial court granted summary judgment for the plaintiff, which the Supreme Judicial Court of Maine affirmed. The court held that the governing recording statute (R.S.1954, Ch. 119, Sec. 9) protects only third parties and not original parties to the contract, so the vendor (and the officer standing in his shoes) could not invalidate the unrecorded agreement; it further concluded that the vendor was estopped from denying validity after assigning the contract for full consideration.